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Three trends are currently driving the global electricity sector: decarbonization, decentralization and differentiation. Utilities are making significant contributions to mitigate carbon emissions, while a technology revolution is …

Cypriot cabinet resigns

The Cypriot cabinet has resigned amid growing public anger over the handling of a political and energy crisis triggered by an explosion at a munitions depot.

Demetris Christofias, the Cypriot president, demanded the resignation of his 11-member cabinet yesterday (28 July) as a way of dealing with the fall-out from the blast, which has left the country with severe economic problems.

In a statement, Christofias said he would not be stepping down. “The people have elected me and I am accountable to the people,” he said. A new cabinet has not yet been named.

The explosion, on 11 July, killed 13 people and destroyed the country’s main power plant, knocking out half of the island nation’s power generation. The blast also put a severe strain on the country’s economy, which is already reeling because of its close financial links to Greece.

The explosion is expected to cost Cyprus at least €1 billion as well as harming economic growth. The financial impact of the explosion has complicated negotiations between the government and labour unions over budget cuts.

Credit-rating agencies have expressed concern over the country’s economic health following the explosion and because of Cyprus’s exposure to the Greek debt crisis. Cypriot bonds have slumped as a result, raising fears that the country could need an EU bail-out.

Moody’s, one of the big three credit-rating agencies, downgraded Cyprus by two points yesterday.

Athanasios Orphanides, the governor of the country’s central bank, has warned Christofias that Cyprus may need to be bailed out unless drastic action is taken by the government to cut public spending.

But government officials said they will not need EU help because the country has enough funds to cover its spending needs for this year.

The Cypriot finance ministry yesterday admitted that the 11 July explosion had “further burdened the economy both in terms of growth and in terms of public finances”.

The ministry said a “climate of political consensus on the home front is necessary” to restore confidence in the country’s economy and public finances. It added that the banking system of Cyprus “remains robust”, adding that banks had enough capital to make it through the crisis.